Industrial production slipped 0.1% last month following a 0.8%
September increase, revised from 1.0%. Manufacturing sector production rose
0.2% (3.4% y/y) following a 0.2% September rise, last month reported as
0.5%. Despite the increase, three-month growth in production fell to
-0.4% (AR). The October decline in total production was driven by a 0.8%
drop (+9.9% y/y) in mining production and a 0.7% shortfall (-1.3% y/y)
in utility output. A 0.2% gain in total production was
expected in the Action Economics Forecast Survey.

Within the special aggregate series, high technology industries
posted a 0.5% production gain (4.8% y/y) following four straight months
of decline. The increase was driven by a 0.6% rise (6.6% y/y) in semiconductors.
Computers & office equipment output fell 0.4% (-1.4% y/y). Factory
sector production excluding the high-tech
sector rose 0.2% (3.4% y/y). Manufacturing production excluding both
high-tech and autos also gained 0.2% (3.2% y/y).

The capacity utilization rate fell to 78.9% and remained below the 80.5% high averaged
in 2007. In the factory sector, the capacity utilization rate slipped to
77.2%, its lowest level since May. Total industry
capacity rose an improved 3.0% y/y while factory sector capacity
increased 2.1%.

Industrial production and capacity data are included in Haver's USECON
database, with additional detail in the IP database. The
expectations figure is in the AS1REPNA database.

Monetary Policy Accommodation, Risk-Taking, and Spillovers
from the Federal Reserve Board is available here.